In the dynamic landscape of the Indian business sector, Software-as-a-Service (SaaS) has emerged as a pivotal growth segment, offering substantial business opportunities. This trend is particularly noticeable in the Banking and Financial Services and Insurance (BFSI) space. To gain valuable insights into the adoption, challenges, and perspectives within this realm, the team from ‘Ignite – a Business Standard Marketing Initiative’ conducted an illuminating interview with Shailesh Singla, Country Head – BFSI & Senior Director at Oracle India, a key player in the SaaS domain.
Singla gives insight into the evolution of SaaS in India, highlighting the progressive steps enterprises take, particularly those in the BFSI industry. He provides significant perspectives on organisations’ transformative journeys to leverage SaaS technologies for increased efficiency and competitiveness. He also emphasizes on the data security measures and protocols that businesses must prioritise to ensure the seamless and secure adoption of SaaS.
Here are the edited excerpts:
How has the BFSI sector’s adoption of SaaS evolved, and what significant growth has Oracle observed in this space?
The Indian SaaS industry is booming, with expectations to reach $50 billion by 2030. For Oracle, the BFSI sector has been a major driver, witnessing a substantial 74% YoY growth in the first half of last financial year. Customers in BFSI are now leveraging SaaS across various functions, transforming core banking systems and gaining operational traction.
Q2: What role does SaaS play in enhancing operational efficiency for banks, especially in terms of scalability and agility?
SaaS solutions provide banks with the scalability and agility needed to adapt swiftly to market changes. Unlike traditional systems, SaaS platforms effortlessly scale, allowing banks to meet increasing customer demands and expand offerings without hefty infrastructure investments. This flexibility translates into cost savings and the ability to allocate resources strategically.
Q3: How does SaaS address the primary concern of cost savings for BFSI, and what role does security play in their decision to adopt SaaS?
Cost savings drive BFSI’s adoption of SaaS, eliminating upfront investments in hardware and licenses. SaaS providers, including Oracle, prioritise robust security measures, offering encryption, access controls, and disaster recovery plans. This ensures data security, mitigating the risk of breaches. The option of self-hosting in the public cloud also simplifies security responsibilities.
Q4: How does SaaS uphold data privacy in the BFSI sector, and what regulations does it help comply with?
SaaS platforms, including Oracle’s, prioritise data privacy in compliance with regulations such as RBI guidelines, PCI DSS, and GDPR. Encryption of sensitive information guards against unauthorised access, and regular audits ensure usage aligns with privacy standards. This not only enhances customer trust but also safeguards BFSI institutions from legal and regulatory challenges.
Q5: Can you share success stories of BFSI’s implementation of Oracle SaaS, leading to improved efficiency and customer satisfaction?
Oracle’s finance capabilities assist banking clients in enhancing client servicing through data-driven strategies. Kotak Bank optimised operations with Oracle Fusion Cloud ERP and Oracle Fusion Cloud HCM. Federal Bank leveraged Oracle CX Sales and marketing cloud for personalised customer experiences. SBI Cards and IDFC Bank also streamlined operations using Oracle’s cloud solutions.
Country Head – BFSI & Senior Director
Oracle India
Q6: How does Oracle’s SaaS approach cater uniquely to the specific needs of the BFSI sector, and what sets it apart in terms of security and integration?
Oracle offers an end-to-end applications layer, providing financials, supply chain, human capital management, and more on a single instance. Our unique configurations ensure a uniform user experience with rich Business Intelligence capabilities. Oracle’s security-first design principles, including isolation and data protection, make it stand out in the face of rising cybersecurity threats. A single integrated platform streamlines operations and lowers the total cost of ownership.
Q7: What trends do you foresee in BFSI’s SaaS adoption, and how should organisations prepare to leverage these trends?
ESG considerations and carbon emissions assessments are becoming crucial for banks. Oracle SaaS offers carbon emission assessment tools to help banks measure, improve, and report emissions. APIs will play a core role in SaaS innovation, facilitating seamless integration with other applications. Banks should focus on environmental responsibility and harness the power of APIs to stay ahead in the evolving SaaS landscape.
